March 16, 2020 [Pipelines International] – A lack of customers could hinder Kinder Morgan’s construction of a new gas pipeline in the Permian Basin, according to report.
According to Reuters, Kinder Morgan Chief Strategy Officer Dax Sanders told analysts earlier this month the Permian Pass natural gas pipeline would not be built until “solid long-term contracts, minimum 10 year take-or-pay contracts” were signed with customers.
The proposed project would transport more than 2 bcf of gas per day from the West Texas shale play to interstate pipelines and LNG export terminals in Louisiana and East Texas.
Kinder Morgan is expecting to put its 2.1 bcf per day Permian Highway gas pipeline into service in 2021 and believes the Permian Pass will be needed by 2023 as gas production increases.
But with oil and gas prices low, Mr Sanders said the company was yet to sign any customers for the pipeline.
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